MSCI Defers Exclusion Rules, Corporate Bitcoin Holders Rally
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 07 2026
0mins
MSCI's decision to defer restrictive exclusion rules sparked a relief rally for corporate bitcoin holders. While treasury strategies dominated the headlines, traditional financial institutions continued their march on-chain with new tokenization pilots and ETF filings, even as miners adjusted their balance sheets to weather revenue pressures. Stay up on the crypto news that matters with "Crypto Currents," daily from The Fly. Join us at 2 PM ET for your essential briefing on the fast-moving world of cryptocurrency on FlyCast radio.MSCI DEFERRAL DECISION BOOSTS CRYPTO TREASURY STOCKS: In a significant development for equities with heavy digital asset exposure, index provider MSCIhas decided not to implement its proposal to exclude "Digital Asset Treasury Companies," or DATCOs, from its global indexes during the February 2026 review., the index provider will instead open a broader consultation on the treatment of non-operating companies. The deferral removes a near-term technical risk that could have forced investors to sell shares of companies that use digital assets like bitcoinor etheras primary treasury reserve assets, preserving benchmark-related capital inflows for now.The news provided an immediate lift to the sector, with the largest corporate bitcoin holder, Strategy, surging 6% in after-hours trading on Tuesday. Other firms with similar treasury strategies, including Bitmine Immersion, Sharplink Gaming, and Twenty One Capital, also saw modest gains following the announcement. Additionally, Strategy's perpetual preferred stockreclaimed the $100 par value level for the first time since November. This return to par allows the company to potentially issue more shares through at-the-market offerings to fund further bitcoin purchases.RIOT AND CLEANSPARK ADJUST BITCOIN TREASURIES AMID REVENUE PRESSURE:While treasury firms saw relief, bitcoin miners spent December adjusting their holdings to manage operational realities.that Riot Platformssold $162M worth of bitcoin in December, reducing its treasury to 18,005 BTC. The sale, which marked Riot's largest single-month liquidation to date, coincided with a slump in "hashprice", a term defined as a measure of mining profitability, back toward cycle lows. Riot was not alone in this strategy, as peer miner CleanSparksold 577 BTC in December, generating $51.5M in proceeds. The sales come as miners grapple with compressed margins while continuing to expand capacity, with Riot increasing its deployed hashrate to 38.5 EH/s.JPMORGAN EXPANDS JPM COIN TO CANTON NETWORK:JPMorganis significantly expanding the utility of its blockchain-based payment rail., the bank's digital payments division, Kinexys, is launching JPM Coin on the Canton Network, a layer-1 blockchain designed for institutional finance. This integration allows JPM Coin to function as a deposit token representing U.S. dollars held at the bank, facilitating 24/7 peer-to-peer transfers and settlements. In related developments, Lloyds Banking Group (LYG) completed the U.K.'s first government bond purchase using tokenized deposits, and Barclaysinvested in Ubyx to develop clearing systems for tokenized money,.CORPORATE WEB3 ADOPTION STRATEGIES DIVERGE:Corporate adoption of Web3 technologies remains mixed. Rumble (RUM) shares moved higher after the video platform launched a non-custodial crypto wallet in partnership with Tether.the integration allows creators to receive tips in bitcoin and stablecoins directly. Conversely, Nikehas reportedly sold its NFT studio, RTFKT, ending a high-profile metaverse experiment. The sale follows the shutdown of the subsidiary's operations amid a cooling NFT market.REGULATORY LANDSCAPE SHIFTS WITH ALL REPUBLICAN SEC COMMISSION:The regulatory outlook in Washington is shifting, with the SEC now comprised entirely of Republican commissioners following the departure of Caroline Crenshaw. This "unusual" composition is expected to pave the way for a pro-crypto rulemaking agenda in 2026, potentially removing prior hurdles for the industry..PRICE ACTION:As of time of writing, bitcoin was trading at$91, 237.43, while ether was trading at $3,159.39,.
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Analyst Views on MSCI
Wall Street analysts forecast MSCI stock price to rise
9 Analyst Rating
7 Buy
2 Hold
0 Sell
Strong Buy
Current: 560.040
Low
570.00
Averages
648.88
High
710.00
Current: 560.040
Low
570.00
Averages
648.88
High
710.00
About MSCI
MSCI Inc. (MSCI) is a provider of critical decision support tools and solutions for the global investment community. The Company operates through four segments: Index, Analytics, ESG and Climate, and All Other-Private Assets. The Index segment offers products, such as MSCI Global Equity Indexes, ESG and Climate Indexes, Factor Indexes, Thematic Indexes, Client-Designed Indexes, Fixed Income Indexes and Real Assets Indexes. The Analytics segment offers risk management, performance attribution and portfolio management content, applications and services. Its ESG and Climate segment offerings include MSCI ESG Ratings, MSCI ESG Business Involvement Screening Research, and MSCI Climate Solutions. The Company's All Other-Private Assets segment comprises the Real Assets segment and Private Capital Solutions segment. The Real Assets segment offers data, benchmarks, return-analytics, climate assessments and market insights for tangible assets such as real estate and infrastructure.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
South Korea's Market Upgrade Hindered by Trading Restrictions
- Market Status Controversy: MSCI CEO Henry Fernandez stated that despite South Korea's advancements in economic, technological, and social aspects, its classification as an emerging market due to equity market functioning limitations undermines investor confidence and market attractiveness.
- KOSPI Index Performance: In 2025, the KOSPI index emerged as the best-performing equity index globally, surging 112% year-to-date, showcasing strong market potential, yet it faces challenges in achieving an upgrade in classification.
- Trading Restrictions Issue: Fernandez emphasized that trading restrictions in Korea prevent investors from buying and selling the won under convenient conditions like in major global markets, which not only complicates portfolio rebalancing but also diminishes market liquidity.
- Slow Reform Progress: Although Korea is moving towards a 24-hour trading plan for the dollar-won spot market, MSCI's concerns about market liquidity and depth persist, indicating that the path to becoming a developed market remains lengthy.
See More
MSCI Acquires First Street to Enhance Climate Risk Data Tools
- Acquisition Overview: MSCI has acquired First Street for $120 million in cash, with potential additional payments based on revenue targets over the next two years, significantly enhancing its climate risk data capabilities in investment tools.
- Climate Risk Assessment Models: First Street provides physics-based climate risk models that assess hazards for over 2 billion buildings globally, enabling clients to better understand and manage climate-related financial risks.
- Growing Market Demand: As extreme weather events increase, companies have become 6.5 times more likely to issue profit warnings in the past two decades, and MSCI's acquisition will address the rising demand for climate risk data from financial institutions and insurers.
- Future Outlook: The deal is expected to close in Q3 2026, with First Street's results reported under MSCI's Sustainability and Climate segment, further strengthening the company's market position in climate risk management.
See More
MSCI Acquires First Street to Enhance Climate Risk Capabilities
- Acquisition Amount: MSCI is acquiring climate risk data provider First Street for $120 million, with the initial cash payment at closing and potential additional payments over the next two years contingent on revenue targets, reflecting MSCI's commitment to the climate risk sector.
- Expected Closing Timeline: The transaction is anticipated to close in Q3 2026, pending regulatory approvals and customary closing conditions, indicating MSCI's cautious approach in expanding its climate investment tools.
- Data Integration Benefits: The integration of First Street's data and tools into MSCI's climate and geospatial solutions will enable quantified assessments of climate risk across over 2 billion structures globally, enhancing MSCI's competitive edge in climate investment.
- Sustainability Strategy: This acquisition will incorporate First Street's financial results into MSCI's Sustainability and Climate segment, further solidifying MSCI's expertise in climate investment tools and research, and positioning the company as a leader in global climate risk management.
See More
MSCI Acquires First Street to Enhance Climate Risk Capabilities
- Acquisition Context: MSCI is acquiring First Street for $120 million to enhance its global climate risk capabilities, addressing the increasing demand from investors and financial institutions for embedded climate risk insights as climate-related risks escalate.
- Data Integration Benefits: The integration of First Street's data and tools into MSCI's climate and geospatial solutions will enable quantified assessments of climate risk across over 2 billion structures worldwide, assisting institutions in meeting rising regulatory and reporting requirements.
- Shifting Market Demand: With companies becoming 6.5 times more likely to issue profit warnings following extreme weather events over the past two decades, MSCI's acquisition will empower clients to better analyze and respond to location-based risks, providing a competitive edge in investment decision-making.
- Future Outlook: The transaction is expected to close in Q3 2026, with First Street's financial results reported within MSCI's Sustainability and Climate segment, further solidifying MSCI's leadership in climate investment tools and research.
See More
KOSPI Struggles to Bounce Back Amid Investor Sentiment Decline
- Market Struggles: The KOSPI index in South Korea attempted a bounce after the fifth-largest selloff in its history, but the gains were minimal before lunchtime, reflecting a decline in investor sentiment, particularly after regulators cooled on popular leveraged ETF products.
- Investor Sentiment Survey: Bank of America's survey revealed that 80% of fund managers view semiconductors as the most crowded trade, indicating that enthusiasm for the sector may have peaked, posing potential risks for future adjustments.
- Indonesia's Market Classification Review: MSCI has placed Indonesia under review for market classification, with investors awaiting reforms on free float and ownership disclosure to enhance market liquidity and transparency, resulting in volatility in Jakarta's stock market.
- New Yen Management Strategy: Japan plans to examine the management of its $1.3 trillion foreign exchange reserves, which could impact the yen's exchange rate, as investors remain cautious about discussions between the finance minister and U.S. counterparts regarding potential joint interventions.
See More
South Korean Stock Market Affected by Political Turmoil
- Market Decline: The Korea Composite Stock Price Index (KOSPI) and other Asian markets, including Hong Kong's Hang Seng Index and the Shanghai Composite Index, have seen declines due to the political turmoil surrounding President Yoon Suk Yeol's role in martial law, indicating a direct impact of political instability on market performance.
- MSCI Assessment Outcome: In its latest market accessibility review, MSCI maintained South Korea's classification as an 'emerging market' and did not include it in the Developed Markets watchlist, disappointing expectations for an upgrade and negatively affecting investor confidence in the South Korean stock market.
- Currency Convertibility Issues: MSCI highlighted that the limited convertibility of the Korean won in offshore markets remains a key barrier to reclassification, and although South Korean authorities have announced measures to address these concerns, investors feel that the underlying issues have not been fully resolved, leading to a lack of market confidence.
- 'Korea Discount' Phenomenon: Analysts have noted that an upgrade to developed market status could help alleviate the 'Korea discount' phenomenon, which refers to the lower valuations often assigned to South Korean stocks compared to global peers, making this upgrade strategically significant for attracting foreign investment and enhancing market performance.
See More
South Korea's Market Upgrade Hindered by Trading Restrictions
- Market Status Controversy: MSCI CEO Henry Fernandez stated that despite South Korea's advancements in economic, technological, and social aspects, its classification as an emerging market due to equity market functioning limitations undermines investor confidence and market attractiveness.
- KOSPI Index Performance: In 2025, the KOSPI index emerged as the best-performing equity index globally, surging 112% year-to-date, showcasing strong market potential, yet it faces challenges in achieving an upgrade in classification.
- Trading Restrictions Issue: Fernandez emphasized that trading restrictions in Korea prevent investors from buying and selling the won under convenient conditions like in major global markets, which not only complicates portfolio rebalancing but also diminishes market liquidity.
- Slow Reform Progress: Although Korea is moving towards a 24-hour trading plan for the dollar-won spot market, MSCI's concerns about market liquidity and depth persist, indicating that the path to becoming a developed market remains lengthy.
See More
MSCI Acquires First Street to Enhance Climate Risk Data Tools
- Acquisition Overview: MSCI has acquired First Street for $120 million in cash, with potential additional payments based on revenue targets over the next two years, significantly enhancing its climate risk data capabilities in investment tools.
- Climate Risk Assessment Models: First Street provides physics-based climate risk models that assess hazards for over 2 billion buildings globally, enabling clients to better understand and manage climate-related financial risks.
- Growing Market Demand: As extreme weather events increase, companies have become 6.5 times more likely to issue profit warnings in the past two decades, and MSCI's acquisition will address the rising demand for climate risk data from financial institutions and insurers.
- Future Outlook: The deal is expected to close in Q3 2026, with First Street's results reported under MSCI's Sustainability and Climate segment, further strengthening the company's market position in climate risk management.
See More
MSCI Acquires First Street to Enhance Climate Risk Capabilities
- Acquisition Amount: MSCI is acquiring climate risk data provider First Street for $120 million, with the initial cash payment at closing and potential additional payments over the next two years contingent on revenue targets, reflecting MSCI's commitment to the climate risk sector.
- Expected Closing Timeline: The transaction is anticipated to close in Q3 2026, pending regulatory approvals and customary closing conditions, indicating MSCI's cautious approach in expanding its climate investment tools.
- Data Integration Benefits: The integration of First Street's data and tools into MSCI's climate and geospatial solutions will enable quantified assessments of climate risk across over 2 billion structures globally, enhancing MSCI's competitive edge in climate investment.
- Sustainability Strategy: This acquisition will incorporate First Street's financial results into MSCI's Sustainability and Climate segment, further solidifying MSCI's expertise in climate investment tools and research, and positioning the company as a leader in global climate risk management.
See More
MSCI Acquires First Street to Enhance Climate Risk Capabilities
- Acquisition Context: MSCI is acquiring First Street for $120 million to enhance its global climate risk capabilities, addressing the increasing demand from investors and financial institutions for embedded climate risk insights as climate-related risks escalate.
- Data Integration Benefits: The integration of First Street's data and tools into MSCI's climate and geospatial solutions will enable quantified assessments of climate risk across over 2 billion structures worldwide, assisting institutions in meeting rising regulatory and reporting requirements.
- Shifting Market Demand: With companies becoming 6.5 times more likely to issue profit warnings following extreme weather events over the past two decades, MSCI's acquisition will empower clients to better analyze and respond to location-based risks, providing a competitive edge in investment decision-making.
- Future Outlook: The transaction is expected to close in Q3 2026, with First Street's financial results reported within MSCI's Sustainability and Climate segment, further solidifying MSCI's leadership in climate investment tools and research.
See More
KOSPI Struggles to Bounce Back Amid Investor Sentiment Decline
- Market Struggles: The KOSPI index in South Korea attempted a bounce after the fifth-largest selloff in its history, but the gains were minimal before lunchtime, reflecting a decline in investor sentiment, particularly after regulators cooled on popular leveraged ETF products.
- Investor Sentiment Survey: Bank of America's survey revealed that 80% of fund managers view semiconductors as the most crowded trade, indicating that enthusiasm for the sector may have peaked, posing potential risks for future adjustments.
- Indonesia's Market Classification Review: MSCI has placed Indonesia under review for market classification, with investors awaiting reforms on free float and ownership disclosure to enhance market liquidity and transparency, resulting in volatility in Jakarta's stock market.
- New Yen Management Strategy: Japan plans to examine the management of its $1.3 trillion foreign exchange reserves, which could impact the yen's exchange rate, as investors remain cautious about discussions between the finance minister and U.S. counterparts regarding potential joint interventions.
See More
South Korean Stock Market Affected by Political Turmoil
- Market Decline: The Korea Composite Stock Price Index (KOSPI) and other Asian markets, including Hong Kong's Hang Seng Index and the Shanghai Composite Index, have seen declines due to the political turmoil surrounding President Yoon Suk Yeol's role in martial law, indicating a direct impact of political instability on market performance.
- MSCI Assessment Outcome: In its latest market accessibility review, MSCI maintained South Korea's classification as an 'emerging market' and did not include it in the Developed Markets watchlist, disappointing expectations for an upgrade and negatively affecting investor confidence in the South Korean stock market.
- Currency Convertibility Issues: MSCI highlighted that the limited convertibility of the Korean won in offshore markets remains a key barrier to reclassification, and although South Korean authorities have announced measures to address these concerns, investors feel that the underlying issues have not been fully resolved, leading to a lack of market confidence.
- 'Korea Discount' Phenomenon: Analysts have noted that an upgrade to developed market status could help alleviate the 'Korea discount' phenomenon, which refers to the lower valuations often assigned to South Korean stocks compared to global peers, making this upgrade strategically significant for attracting foreign investment and enhancing market performance.
See More
